Climate change is already having a significant impact on national economies and long-term GDP growth. Yet chronic physical climate risks remain largely absent from sovereign bond spreads, creating a major market blind spot for investors and asset managers.

This disconnect may result in misallocated capital, suboptimal fixed-income investment decisions, and increasing challenges in meeting regulatory expectations around climate risk assessment and disclosure.

To help address this gap, Scientific Climate Ratings, a venture of EDHEC Business School, has developed a new generation of Sovereign Climate Ratings. Built on years of scientific research, these ratings provide a granular assessment of climate-related sovereign risk through a probabilistic framework aligned with the Network for Greening the Financial System (NGFS) scenarios. Their unique methodology captures within-country heterogeneity and long-term physical climate risk exposure with unprecedented detail.

 

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What You Will Learn

During this webinar, participants will:

  • Understand why sovereign markets may be underpricing physical climate risks.
  • Discover the scientific methodology underpinning SCR’s Sovereign Climate Ratings.
  • Explore key findings from the latest research.
  • Learn how investors and asset managers can identify structural economic vulnerabilities before they are reflected in sovereign spreads.
  • Gain insights into the practical applications of climate-adjusted sovereign risk assessments for portfolio construction and risk management.

 

Speakers

Nicolas Schneider, Senior Research Engineer – Macroeconomist, EDHEC Climate Institute

Nicolas Schneider leads the development of quantitative methodologies to assess long-term physical climate risks and associated macroeconomic damages. His work supports both EDHEC Climate Institute research and venture initiatives, including Scientific Climate Risk Ratings and Scientific Portfolio.

Prior to joining EDHEC, he consulted for the New York City Mayor’s Office of Climate and served as a fellow in the U.S. Department of Energy’s Multi-Sector Dynamics Modeling Initiative. He holds a PhD from Boston University and MSc degrees from the London School of Economics and Paris-Sorbonne University.

Thibaud Barnaud, Climate Risk Manager, Scientific Climate Risk Ratings

Thibaud Barnaud co-leads the consulting practice at Scientific Climate Risk Ratings, focusing on the quantification of climate risks for investors and corporates. Previously, he was a Manager at EY specializing in climate risk and adaptation strategies, where he also co-founded and led the development of EY Global’s climate risk analysis platform. He graduated from École Polytechnique and AgroParisTech, with a specialization in Environmental Economics.

Moderator, Stella Farrington, Head of Content, Energy Risk

Stella Farrington is a financial journalist with more than 25 years of experience, primarily covering energy and commodity markets. Before joining Energy Risk, she worked for Dow Jones Newswires, Futures World News, and FT Publishing.

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